GLOBAL SECURITY & BRAND PROTECTION 2017 YEAR IN REVIEW

EMPOWERING tRust

IN tHE UL MARK

3

UL GLOBAL SECURITY & BRAND PROTECTION 2017

uL has built its brand on a foundation of trust. As sentinels of that trust, uL’s Global security & Brand

Protection team worked diligently in 2017 to protect the uL Mark from misuse by counterfeiters,

and to guard our digital and physical assets from any potential threats or breaches.

In 2017, our global team conducted 834 customs investigations, 325 anti-counterfeiting investigations and took

down over 6,000 online listings for products bearing counterfeit uL Marks. through our successful partnerships with

global customs and law enforcement organizations, 2.2 million products bearing counterfeit uL Marks were seized and

prevented from entering the stream of commerce.

I’m sure when Edison invented the light bulb in 1879, he would have never imagined that it would be one of the

most counterfeited products. In 2017, 300,000 counterfeit lighting products were seized by global law enforcement.

these frequently used products, when counterfeited, pose a significant safety threat to unsuspecting consumers

and our team will continue to focus our efforts on removing them and other dangerous counterfeit products from

the supply chain.

A highlight of the year was the 11th Annual International IP Crime Conference held at the united Nations

headquarters in New York City. the speakers and attendees were engaging and inspiring, and the venue proved to be a

perfect backdrop for global stakeholders to discuss new approaches to combating intellectual property (IP) crime. We

are proud to say that it was the largest conference to date with 600 delegates from more than 60 countries in attendance.

In closing, I’d like to thank all of our customers and partners for their commitment and support

throughout the year as we work to empower trust in the uL Mark.

sincerely,

Brian Monks

Vice President & Chief security Officer

Global security & Brand Protection

EffECtIVE ENfORCEMENt: GLOBAL INVEstIGAtIONs

GLOBAL sECuRItY & BRAND PROtECtION tEAM WORLDWIDE

GLOBAL CustOMs AND BORDER PROtECtION PROGRAM

tOP COuNtERfEIt PRODuCt: LIGHtING

uL ANtI-COuNtERfEItING YEAR-END REPORt 2017

INtERNAtIONAL CONfERENCEs

AWARD CEREMONY At 11tH IP CRIME CONfERENCE

INtERNAtIONAL IP CRIME INVEstIGAtORs COLLEGE (IIPCIC)

LOOkING AHEAD

uL PROjECt CENtuRION

GUILDFORD

BALLERUPDUBLIN

WARRINGTON

SHANGHAI

GUANGZHOU

DALLAS

MEXICO CITY

RESEARCH TRIANGLE PARK, N.C.

NEW YORK

WINDSOR

TORONTO

LOS ANGELES

CAMAS

NORTHBROOK

HONG KONG

MANILA

Our team works to secure the integrity of the UL Mark and UL’s digital and physical

assets. Our program continues to grow and adapt to effectively combat counterfeiting

activities. In 2017, our team grew to include a new location in Europe: Dublin. We also

continued to focus our attention on investigating false online claims and the misuse

of UL’s Mark in the digital marketplace.

GLOBAL SECURITY & BRAND PROTECTION TEAM WORLDWIDE

GLOBAL GsBP OffICEs

UL GLOBAL SECURITY

UL BRAND PROTECTION

EnforcEMEnt

Our Brand Protection team utilizes

a priority-focused, intelligence-led,

project-based and integrated

approach for undertaking successful

anti-counterfeiting actions.

GloBal DiGitalSEcurity

Protects uL’s systems and

infrastructure from vulnerabilities

and threats.

EDucation

Our comprehensive education

program helps build capacity

within public and private sector

organizations to combat

IP crime.

PhySical SEcurity

Protects our people,

premises and the assets

of uL and our customers.

PartnErShiPS

Our extensive outreach program

builds strong and effective public and

private sector partnerships through

uL brand protection conferences,

workshops and initiatives.

Data Privacy

Ensures personal data

is protected.

The Global Security & Brand Protection (GSBP) team is committed to worldwide partnerships

to combat the illicit trade of counterfeit products. In 2017, there was an influx of counterfeited

lighting products entering the marketplace. Through successful partnerships, supported by

education and enforcement, the GSBP team was able to prevent these dangerous lighting

products from entering the homes and workspaces of consumers all over the world.

nuMBEr of ProDuctS

SEizED 340,100nuMBEr

of liGhtinG caSES 195

tOP COuNtERfEIt PRODuCt: LIGhTING

6% Asia

2% Latin America

92% North America

Regions PRoducts weRe seized

toP fouR counteRfeit Lighting PRoducts seized

LIGHtING ROAD sHOW: ul liGhtinG StakEholDEr foruMSDuring 2017, the GsBP team participated in the uL Lighting stakeholder forums

hosted in New York, Los Angeles and Chicago. the show provided an opportunity

for the Brand Protection team to present uL’s anti-counterfeiting solutions to uL

customers. topics included: new safety requirements for horticultural lighting,

LED drivers, luminaires and other lighting equipment as well as identifying

cybersecurity best practices for lighting systems.

23% LED Lamps

16% LED surface- Mounted Luminaires

6% Himalayan salt Lamps

36% Decorative Lighting-Inflatables

COuNtERfEIt PortaBlE anD incanDEScEnt luMinairES sEIzED WORtH

$375,000In 2017, the GsBP team worked alongside u.s. Customs & Border Protection,

on a transnational operation that uncovered the unauthorized distribution

of portable and incandescent luminaires bearing a counterfeit uL Mark at the

Port of savannah, Ga. these efforts led to the seizure of roughly 5,000 luminaires

with an estimated value of $375,000 usD.

latin aMErica

EMEa

Europe, Middle East and Africa

rESt of aSia

62

china

north aMErica

50

746

178

312

numbeR of counteRfeit cases RePoRted PeR geogRaPhic Region

UL ANTI-COUNTERfEITING YEAR END REPORT 2017

uL maRk authentication tRaining sessions conducted

aMEricaS aSia Pacific

EuroPE, MiDDlE EaSt anD africa

total nuMBEr of officErS trainED26 23 2 2,280

toP fouR counteRfeited PRoducts

7% 6% 3% Cord setsBatteriessurface-Mounted Luminaires22% Power

supplies

case numbeRs bReakdown

+ + =anti-countErfEitinG invEStiGationS

325 834cuStoMS invEStiGationS

onlinE invEStiGationS

189 1,348total invEStiGationS for yEar

2,205,623total nuMBEr of ul countErfEit

ProDuctS SEizED 6,000total nuMBEr of onlinE liStinG

takE DownS

EffECTIVE ENfORCEMENT:GLOBAL INVESTIGATIONS

our global enforcement team is led by former law enforcement officers with

specialized experience in conducting intellectual property crime investigations.

Some of our most significant cases in 2017 involved household items such as fans,

power adapters and recreational equipment, e.g., hoverboards. working together

with global law enforcement led to the removal of hundreds of thousands of these

potentially lethal counterfeit products.

5,143 SPrinklErS sEIzEDIN INDIA

ovEr 42,000 fanS sEIzEDWItHIN tHE COLÓN fREE tRADE zONE

hovErBoarDS ANDuL HOLOGRAPHIC LABELs sEIzED WORtH

$1.5 Million

PowEr aDaPtErS sEIzED WORtH

$235,840

In september 2017, the Los Angeles

County sheriff’s Department’s

Counterfeit and Piracy Enforcement

team (LAsD CAPE), in partnership with

the GsBP team, executed a search

warrant at a warehouse in santa fe

springs, Calif. A total of 2,510

hoverboards with counterfeit uL

holographic labels were seized.

the GsBP team also recovered 2,325

counterfeit uL holographic labels. the

total seizure amount for the

hoverboards and the holographic labels

were estimated at $1.5 million.

In january 2017, the GsBP team

assisted Panama customs officials with

a seizure at a warehouse operating in

the Colón free trade zone.

Approximately 6,000 fans were seized

displaying counterfeit uL Marks on the

packaging and labels affixed to fan

motors.

In March 2017, Panamanian customs

authorities, assisted by investigators

from the GsBP team, conducted another

seizure at a warehouse operating within

the Colón free trade zone.

As a result of the seizure, over 42,000

fans were seized that displayed

counterfeit uL Marks on the packaging.

In february 2017, the GsBP team

assisted the united states Homeland

security Office with a search warrant

in san francisco. this case resulted

from a two-year investigation into an

online distributor. Based on the

information provided by uL, the united

states Homeland security Office seized

approximately 3,227 counterfeit uL

labels with an estimated manufacturer’s

suggested retail price (MsRP) value of

$217,705.

In addition, there were approximately

279 adapters found in the warehouse

bearing uL counterfeit labels. the

estimated MsRP value of the adapters

totaled $18,135. the total value for all

seized counterfeit items was estimated

at $235,840.

In september 2017, the GsBP team

worked with a uL customer to uncover

sprinklers bearing counterfeit uL

Marks at a construction site in the

World trade tower (Wtt), Noida, India.

Information gathered showed that

some of the counterfeit sprinklers were

installed at the site and the remainder

of them were waiting to be installed.

As a result of the intelligence gathered

by the GsBP team, the Indian police

raided the warehouse ensuring the

seizure of 5,143 pendent sprinklers

bearing counterfeit uL Marks.

Authorities required Wtt to uninstall

the counterfeit sprinklers and replace

them with genuine sprinklers.

GLOBAL CUSTOMS AND BORDER PROTECTION PROGRAM

ProDuctS BEarinG countErfEit ul MarkSSEizED By cuStoMS anD

BorDEr ProtEction aGEnciES arounD thE worlD

ul’s Global customs and Border Protection Program

partnered with global customs agencies in hong kong,

china, Panama, Mexico, trinidad and tobago, and

the u.S. to strengthen our anti-counterfeiting efforts

around the world. as in years past, the majority of mark

verification requests originated in the united States

allowing for the highest volume of products bearing

counterfeit ul Marks to be seized along u.S. borders.

PoPular anD nEw DEStinationS fOR PRODuCts BEARING COuNtERfEIt uL MARks

incrEaSE in inquiriEStowards the end of the year, uL received

a suspicious merchandise inquiry from ports every

3.5 days, which is a 156% increase over 2016.

CHINA CustOMs sEIzED1,940 SMartPhonES WORtH

$120,000In March 2017, the Global security & Brand

Protection team worked in partnership with

kunming customs, China, and seized a shipment of

1,940 smart phones bearing counterfeit uL Marks

with an estimated value of $120,000. this is the

first time uL has assisted in the seizure of

smartphones bearing counterfeit uL Marks.

ParticiPation in INtELLECtuAL PROPERtY RIGHts

traininG EvEntIn October 2017, uL’s Global Customs team participated in an intellectual

property rights training event sponsored by the u.s. Customs and Border

Protection (CBP), Office of field Operations in savannah, Ga. and

Charleston, s.C. Approximately 65 personnel participated in the training.

the GsBP Global Customs team conducted several sessions with topics

that included an introduction to uL, the importance of certification marks,

product verification techniques and counterfeit trends.

AlbAniA AustrAliA

CAnAdA ChinA

CzeChrepubliC dominiCAnrepubliC

FrAnCe GermAny

GreeCe

Pakistan Peru

PhiliPPines Qatar

russia saudi arabia

singaPore slovenia

south korea

Hong Kong IndIa

IndonesIa Iran

Israel Italy

MexIco Morocco

MozaMbIque

Taiwan Thailand

Turkey uae

ukraine uniTed kingdom

uSa VieTnam

ProDuctS BEarinG countErfEit ul MarkSSEizED By cuStoMS anD

BorDEr ProtEction aGEnciES arounD thE worlD 1.5 Million 15

6%

UL PROjECT CENTURION

ul’s Brand Protection team initiated project centurion at the close of 2017 with the aim of

identifying and removing potentially hazardous counterfeit consumer products from the stream

of commerce. the six-week operation took place over the 2017 holiday season and spanned three

regions: the americas, Europe, the Middle East and africa (EMEa), and the asia-Pacific region (aPac).

During the operation, our ul Brand Protection investigators used strategic intelligence to focus their

investigations on entities that were manufacturing, selling and distributing potentially counterfeit

products. the operation also included the online marketplace, which offers consumers numerous sites

where counterfeiters can distribute their products without any required safety measures. Project centurion

successfully removed thousands of products and took down hundreds of online listings from the marketplace.

PRODuCt tYPEs sEIzEDusB travel Adaptors

Lighting Products

Hoverboards

sound-Activated Devices

solar Panels

AMERICAS EstIMAtED REtAIL VALuE sEIzED

$1,189,095PRODuCt tYPEs sEIzED

Power Adapters

Lithium-Ion Batteries

travel Adaptors

ASIA PACIfIC EstIMAtED REtAIL VALuE sEIzED

$7,320,000

PRODuCts sEIzEDLithium-Ion Batteries

EUROPE, MIDDLE EAST

AND AfRICA EstIMAtED REtAIL VALuE sEIzED

$4,160,310

PRODuCt tYPEs sEIzEDtravel Adapters

Lithium-Ion Batteries

Information technology Equipment

ONLINE LISTINGS501 tOtAL tAkEDOWNs Of

INTERNATIONAL CONfERENCES

In 2017, uL’s Education and Partnership team led multiple initiatives

designed to strengthen the bonds and communication between the public

and private sectors with the goal of increasing their effectiveness when

combating counterfeiting and piracy crimes. uL is proud to support the various

international forums where law enforcement, the private sector and government

agencies can engage in meaningful discussions on IP crime and share ideas about

strategies and policies.

uL partnered with INtERPOL, u.s.

Immigration and Customs Enforcement

(ICE), the u.s. National Intellectual Property

Rights Coordination Center (IPR Center), and the International AntiCounterfeiting

Coalition (IACC) to co-host the 11th Annual International Law Enforcement Intellectual

Property Crime Conference. the event was held on August 28-29, at the united

Nations headquarters in New York City.

themed “uniting Nations for the Next Decade,” the event focused on how

established networks, knowledge and resources can be leveraged to fight Intellectual

Property (IP) crime in the years to come. Approximately 600 delegates from more than

60 countries joined the conference’s speakers and panelists to focus on evolving crime

trends in areas such as illicit trafficking on the internet, as well as protecting the public

from potentially harmful products. this year’s conference also drove discussions about

technologies and other solutions that may help diminish product counterfeiting.

the IP crime conference is a perfect example of one of the many tools that have

been developed to stem the flow of illegal counterfeit products. the event has

developed into a vital platform for law enforcement professionals and public and

private organizations to share best practices, develop new tools and create stronger

partnerships to combat transnational organized IP crime and promote safety

worldwide. the conference underscores uL’s role in the global brand protection and

anti-counterfeiting arena as a worldwide strategic leader in operations, partnerships

and training programs.

As a company that has long been a leader in advancing safety, uL will continue to work

closely with our international partners and dedicate our thought leadership and

resources to deliver innovative and leading edge solutions to support global efforts in

defeating global IP crime.

the Europol Intellectual Property Crime Conference

on Innovative strategies for Effective Enforcement

took place in Antwerp, Belgium, on september 19-20,

2017, at the Hilton Antwerp Old town. the event

was co-organized with the Belgian Customs Authority, uL (underwriters Laboratories)

and the International AntiCounterfeiting Coalition (IACC).

Approximately 400 senior law enforcement officials, security and industry experts,

from 42 countries attended this two-day conference. Participants reviewed emerging

crime trends as well as outlined enforcement strategies and best practices via

operational case studies and industry perspectives.

>60 COuNtRIEs

42 COuNtRIEs

600 DELEGAtEs

400 ExPERts

IN nEw york city

IN antwErP

11th ANNuAL INtERNAtIONAL LAW ENfORCEMENt IP CRIME CONfERENCE

EuroPol INtELLECtuAL PROPERtY CRIME CONfERENCE

ul outstanding Brand Protection Partner of the year award

to honor our business partner’s commitment to public safety and support of uL’s

anti-counterfeiting initiatives, uL presented sanjiv sarwate, senior legal director

at Dell Inc., with the 2017 Outstanding Brand Protection Partner Award at the 2017

IP Crime Conference in New York City. Dell was a steadfast partner in the 2017 joint

investigation that yielded an estimated $1,000,000 in counterfeit laptop batteries

and adapters – one of uL’s largest intellectual property seizures to date.

With an increasing number of counterfeit lithium-ion batteries in the marketplace,

brand partners like Dell prove to be vital allies in the fight against counterfeiting.

Counterfeiting is a direct threat to business, the economy and public safety.

Dell’s commitment to this problem helps create safer living and working environments

for all.

From left to right: Keith Williams, CEO and president at UL; Sergeant Kevin Yates; Detective K. Deek Moore; Brian Monks, vice president & chief security officer at UL; Daoming Zhang, assistant director illicit markets from INTERPOL; Sanjiv Sarwate, senior legal director at Dell Inc.; Detective James Kerby; and Aaron Aguilar, regional investigation manager at UL

11th ANNUAL INTERNATIONAL LAW ENfORCEMENT IP CRIME CONfERENCE

iiPcic outstanding Public and Private Sector Partnership awards

In 2017, the International IP Crime Investigators College (IIPCIC) recognized two public

sector organizations for their commitment in the fight against IP crime with the 2017

Outstanding Public and Private sector Partnership Award. Marjorie Ottenville from u.s.

Customs and Border Protection received the award for her valuable support in the fight

against IP crime through her dedication to global education and awareness. the

Austin Police Department’s Criminal Conspiracy team also received the 2017

Outstanding Public and Private sector Partnership Award for its success in targeting

and identifying counterfeit products throughout the Americas and preventing them

from entering into the stream of commerce.

the recipients received their awards during the 2017 Annual International Law

Enforcement IP Crime Conference which was held from August 28-29, 2017, at the

united Nations headquarters in New York.

On behalf of IIPCIC, we thank all of the 2017 award recipients for their efforts in

increasing educational opportunities, awareness and communication between the

public and private sectors. IIPCIC believes their commitment serves as a powerful

example of the vital role of public/private sector partnerships in the fight

against transnational IP crime.

From left to right: Daoming Zhang, assistant director illicit markets at INTERPOL and Marjorie Ottenville, international trade specialist at U.S. Customs and Border Protection

From left to right: Daoming Zhang, assistant director illicit markets at INTERPOL and Detective James Kerby, Sergeant Kevin Yates

and Detective K. Deek Moore from the Austin Police Department

11th ANNUAL INTERNATIONAL LAW ENfORCEMENT IP CRIME CONfERENCE

INTERNATIONAL IP CRIME INVESTIGATORS COLLEGE (IIPCIC)

since 2010, the International IP Crime Investigators College (IIPCIC), a joint initiative

between INtERPOL and uL, has been the leader in IP crime education for global

law enforcement. the core curriculum consists of 14 in-depth IP protection courses

that provide the critical knowledge needed to combat current and emerging threats

from IP criminals.

IIPCIC also empowers companies by educating over 14,000 global law enforcement

professionals on how to detect product counterfeits, which have the potential to

injure consumers and damage a brand’s image.

to learn more please visit iiPcic.org

2017 IIPCIC RESULTS

148Countries Represented

11New Courses Launched

5Courses translated into Eight Different Languages

14,352students Enrolled Increased by 14% compared to 2016

729Agencies Represented

53Private sector Organizations

2% Middle East and North Africa

13% Asia and south Pacific

18% Europe

16% North America

19% Latin America

32 % Africa

IIPCIC students by Region

NEW COURSES LAUNChED IN 2017

4.7 total courSE SatiSfaction rating (out of 5)

this IIPCIC online course was developed in partnership with the International Institute

of Research Against Counterfeit Medicines (IRACM) and trains law enforcement officials

on the illicit trade of medical products, how to define substandard and falsified medical

products, how to walk through the scope and scale of this illicit trade, and outlines

the tragic impact on individuals and society.

Law enforcement officials review the role they play in preventing and interdicting this

illicit trade. they also focus on several multinational and international operations

and are presented real-world scenarios to help them understand the steps involved in

cases that originate from customs and from operations targeting the online sale of

medical products.

this IIPCIC online training series, developed by a team of transnational subject matter

experts, provides customs officers from around the world with the knowledge they

need to confidently approach the detection and interdiction of illicit goods crossing

international borders. this series covers important and timely topics like the sharing of

customs best practices, international supply chain management government agency

cooperation, private sector partnerships, risk management, and legal proceedings in

IPR cases. these topics and others serve to inform customs officers and promote

proven strategies for interdicting IP crime on an international stage.

intellectual Property rights (iPr) Enforcement for customs officers

understanding and addressing the illicit trade of Medical Products

INTERNATIONAL IP CRIME INVESTIGATORS COLLEGE (IIPCIC)

www.IIPCIC.org

LOOKING AhEADNETWORKING

JunE 26-27 2ND EuROPOL INtELLECtuAL PROPERtY CRIME CONfERENCE

BuDaPESt, hunGary

SEPtEMBEr 24 IIPCIC ONLINE INVEstIGAtIVE tECHNIQuEs WORksHOP

At tHE 12tH INtERNAtIONAL LAW ENfORCEMENt IP CRIME CONfERENCE

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SEPtEMBEr 25-2612tH INtERNAtIONAL LAW ENfORCEMENt IP CRIME CONfERENCE

DuBai, uaE

octoBEr 17-19 LAtIN AMERICA suMMIt

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© 2018. uL LLC and the uL Logo are trademarks of uL LLC. All rights reserved. No portion of this material may be reprinted in any form without the express written permission of uL LLC or otherwise provided in writing.

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For more inFormation on our global brand protection and anti-counterFeiting activities please visitUL.com/Anti-counterfeiting